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Amazon Drops Fees for Small Indian Sellers
2 Mar
Summary
- Amazon eliminates referral fees for products under 1,000 rupees.
- The policy change aims to attract more merchants to its marketplace.
- This move targets small businesses and entrepreneurs in smaller cities.
Amazon is set to eliminate referral fees for products priced under 1,000 Indian rupees, a move effective March 16. This policy update expands Amazon's "zero-referral fee" initiative, which previously covered items below 300 rupees and significantly boosted new seller acquisition.
The updated structure now encompasses over 125 million products, aiming to make selling on Amazon more profitable and straightforward, especially for small businesses and entrepreneurs located in smaller cities. Amazon also announced reductions in certain shipping charges.
This strategic decision comes as India represents a critical market for Amazon, driven by its rapidly growing internet user base. However, the company faces stiff competition from domestic players like Flipkart and Reliance Industries, as well as rapid advances in quick-commerce services.
Amazon has signaled its commitment to India, pledging to invest over $35 billion by 2030. This investment is intended to enhance its AI infrastructure, logistics, and support for small-business growth within the country.
